Management and Organizational Studies 2320A/B Chapter Notes - Chapter 13: Discount Store, Convenience Store, Self-Service

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Published on 21 Apr 2013
School
Western University
Department
Management and Organizational Studies
Course
Management and Organizational Studies 2320A/B
Chapter 13 Textbook Summary Notes
Retailing and Wholesaling
Retailing: all activities involved in selling products or service directly to final
consumers for their personal, nonbusiness use
Retailers: businesses whose sales come primarily from retailing
Shopping marketing the idea that the retail store itself is an important
marketing medium
o Focusing the entire marketing process from the product and brand
development to logistics promotion and merchandising toward
turning shoppers into buyers at the point of sale
o Concept suggest that these efforts should be coordinated around the
shopping process itself
o Emphasized the important of the retail environment on customer
buying
Nonstore retailing selling to final consumers through the Internet, direct
mail, catalogues, and telephone
o Growing rapidly
Types of Retailers
o They can be classified in terms of several characteristics, including the
amount of service they offer, the breadth and depth of their product
lines, the relative prices they charge, and how they are organized
o Amount of Service
Three levels:
Self service retailers serve customers ho are willing to
perform their own locate compare select process to
save time or money
Limited service retailers- provide more sales assistance
because they carry more shopping goods about which
customers need information (increased operating costs
result in higher prices)
Full-service retailers salespeople assist customers in
every phase of the shopping process
o Product Line
Specialty store: carry narrow product lines with deep
assortments within those lines
Department stores: carry a wide variety of product lines
Supermarkets: a large, low cost, low margin, high volume, self
service store that carries a wide variety of grocery and
household products
Cutting costs, establishing more efficient operations,
lowering prices, and attempting to compete more
effectively with food discounters
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Convenience store: small stores that carry a limited line of
high turnover convenience goods (highly competitive with
rapid changes)
Superstores: much larger than regular supermarkets and offer
a large assortment of routinely purchased food products, non
food items, and services (Costco)
Category killers: a giant specialty store that carries a very
deep assortment of a particular line and is staged by
knowledgeable employees
Service retailers: a retailer whose product line is actually a
service, including hotels, airlines, banks, universities, and many
others
o Relative Prices
Discount store: sells standard merchandise at lower prices by
accepting lower margins and selling higher volumes
Off-price retailers: a retailer that buys at less than regular
wholesale prices and sells at less than retail (factory outlets)
Independent off price retailers: an off price retailer
that is either independently owned and run or is a
division of a larger retail corporation
Factor outlets: manufacturer owned and operated
stores by firms
Warehouse clubs: limited selection of brand name
grocery items, appliances, clothing, and a hodgepodge of
other goods at deep discounts to members who pay
annual membership fees
o Organizational Approach
The major types of retail organizations corporate chains,
voluntary chains, retailers cooperative, franchise
organizations, merchandising conglomerates
Chain stores: two or more outlets that are commonly owned
and controlled
Many advantages over independents
Their size allows them to buy in large quantities at
lower prices and gain promotional economies
Voluntary chain a wholesale-sponsored group of
independent retailers that engage in group buying and
common merchandising (IGA)
Retailer cooperative a group of independent retailers
that band together to set up a jointly owned, central
wholesale operation and conduct joint merchandising
and promotion efforts (True Value Hardware)
Franchise: a contractual association between a manufacturer,
wholesaler, or service organization (a franchisor) and
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Document Summary

Retailing: all activities involved in selling products or service directly to final consumers for their personal, nonbusiness use. Retailers: businesses whose sales come primarily from retailing. Nonstore retailing selling to final consumers through the internet, direct mail, catalogues, and telephone: growing rapidly. Self service retailers serve customers ho are willing to perform their own locate compare select process to save time or money. Limited service retailers- provide more sales assistance because they carry more shopping goods about which customers need information (increased operating costs result in higher prices) Full-service retailers salespeople assist customers in every phase of the shopping process: product line. Specialty store: carry narrow product lines with deep assortments within those lines. Department stores: carry a wide variety of product lines. Supermarkets: a large, low cost, low margin, high volume, self service store that carries a wide variety of grocery and household products.

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